Thailand submits final proposal in tariff talks with US

Thailand has entered the final stage of negotiations with the U.S. on tariffs, hoping to achieve a tax rate that is competitive with regional partners before the August 1 deadline.

In a recent statement, Thai Deputy Prime Minister and Minister of Finance Pichai Chunhavajira said that Thailand submitted its final proposal to the U.S. on Wednesday, July 23.

In previous negotiations, the U.S. reviewed 90% of Thailand's proposals and made some counter-arguments based on their requests.

Pichai said Thailand would consider these proposals from the U.S. and expressed his hope that Washington would reduce import tariffs on Thai goods from 36% to a rate closer to that of other countries in the region.

When asked whether the U.S. had added any new conditions, Pichai confirmed that the U.S. has not requested additional terms, but has outlined the policies they expect from Thailand, which will be reviewed before final decisions are made.

Pichai expressed his hope that a final answer from the US would come before the August 1 deadline.

Meanwhile, Siam Commercial Bank’s Economic Intelligence Centre (SCBEIC) has outlined three potential scenarios regarding the impact of US tax negotiations on Thailand.

In the first scenario, where the U.S. does not reduce tariffs, Thailand’s economy would be significantly affected. Under this scenario, the country’s GDP growth is projected to reach only 1.1% in 2025 and fall further to 0.4% in 2026.

The second scenario assumes a partial reduction in tariffs, but Thailand’s exports would still face higher duties compared to key competitors. In this case, GDP growth is forecast to reach 1.5% this year and 1.2% in 2026.

In the most favourable scenario, where Thailand secures a competitive tariff rate, the country’s GDP is expected to grow by 1.5% in 2025 and 1.4% in 2026.